Limitless funding account types and drawdown gives traders looking for proprietary capital a stable and adaptable platform. Founded in July 2023, Limitless Funding is a prop trading firm with its headquarters located in Zagreb, Croatia. With an emphasis on flexibility, transparency, and supporting different trading styles and experience levels, it provides traders with the chance to access substantial trading funds through a systematic review procedure. This article delves into the specifics of Limitless funding account types and drawdown, the assessment procedure, and the crucial idea of drawdown management—a vital component of risk management for the firm and its traders.
An Overview of Limitless Funding
ThinkMarkets and Limitless Funding collaborate to offer access to well-known trading platforms including MetaTrader 4 (MT4) and MetaTrader 5 (MT5). Traders can use a variety of instruments, such as:
- Forex pairs
- CFD indices
- Metals
- Equity shares
- Cryptocurrencies
Leverage can range from 30:1 for currency and metals, 10:1 for stocks, and 4:1 for cryptocurrencies, depending on the instrument and account type.
Limitless Funding Account Types
For both new and seasoned traders, Limitless Funding provides six account types, ranging from $5,000 to $200,000. Based on the evaluation structure, the firm’s evaluation method features three primary account types that are tailored to various trading strategies and risk appetites:
1-Phase Evaluation Account
- Target Audience: Knowledgeable traders seeking rapid access to capital.
- Profit Target: 10% of initial balance.
- Drawdown Limits: 5% daily loss, 6% maximum trailing drawdown.
- Profit Split: 75% standard, up to 90% with add-on purchase.
- Evaluation Structure: Single phase; pass the profit target without breaching drawdown limits to become funded.
2-Phase Evaluation Account
- Target Audience: Traders emphasizing discipline and consistency.
- Profit Targets: 10% in Phase 1, 5% in Phase 2.
- Drawdown Limits: 4% daily loss, 8% maximum static drawdown.
- Profit Split: 80% standard, up to 90% with add-on.
- Evaluation Structure: Two phases; both must be completed successfully to qualify for funding.
3-Phase Evaluation Account
- Target Audience: Beginners or those preferring a slower, more gradual approach.
- Profit Target: 5% for each phase.
- Drawdown Limits: No daily drawdown; 5% maximum overall loss.
- Profit Split: Up to 90% with add-on.
- Evaluation Structure: Three phases, each with a 5% profit target, designed to ease traders into risk management.
Account Sizes and Pricing
The possible account sizes are $5k, $10k, $25k, $50k, $100k, and $200k. Account size and evaluation type determine pricing; a $5k account in the 3-phase challenge has the lowest entry point at $42, while a $200k 1-phase challenge has the highest at $1,198.
Drawdown: Meaning and Use
In proprietary trading, drawdown is a crucial risk management tool that guards against excessive losses for the trader and the firm’s capital. Limitless Funding uses two primary drawdown methods:
Maximum Trailing Drawdown
- Definition: It is the utmost amount that an account can drop from its highest value (the high water mark) before it is breached.
- Application: For one-phase accounts, it is initially set at 6% of the initial balance. As the account expands, this drawdown “trails” the high water mark until a 6% gain is realized. It then becomes static and locks at the initial balance.
- For instance, the trailing drawdown begins at $94,000 for an account worth $100,000. The drawdown locks at $100,000 if the account reaches $106,000, so it can never drop below this amount.
Daily Loss Limit
- Definition: The maximum permitted loss in a single trading day, as determined by the balance at the end of the preceding day.
- Application: The daily loss cap is 4% for two-phase accounts and 5% for one-phase accounts. Account closure and a hard breach occur when this limit is exceeded.
- For instance, a 5% daily loss restriction prevents the account’s equity from dropping below $95,000 the following day if the amount was $100,000 the day before.
Maximum Static Drawdown (2-Phase and 3-Phase)
- 2-Phase Accounts: 8% static drawdown. Once set, it does not trail the high water mark but remains fixed relative to the starting balance.
- 3-Phase Accounts: 5% maximum overall loss, with no daily drawdown limit, making it suitable for beginners.
Drawdown Scenarios and Withdrawal Impact
Limitless Funding drawdown rules are designed to balance risk and trader flexibility, especially regarding withdrawals:
- Withdrawal Effect: The maximum drawdown “locks” at the original beginning balance when a trader requests a withdrawal. This raises the possibility of an account breach in the event of losses since the trader’s buffer against drawdown is diminished following a withdrawal.
- For instance, the account balance falls to $106,000 if a trader increases a $100,000 account to $120,000 and takes out $14,000 (getting $11,200 with an 80% profit share). The trader can only lose $6,000 before going over the drawdown limit because the maximum drawdown is still capped at $100,000.
“Please note you are entitled to a full withdrawal, however in doing so, you will leave no room for drawdown which puts your account at risk of being breached.”
Profit Split and Payouts
- Standard Profit Split: 75% (1-phase), 80% (2-phase), up to 90% with add-on purchase.
- Payout Schedule: Profits are allocated in accordance with the predetermined split, and monthly payouts are offered.
- Rules for Withdrawals: Because withdrawals lock the drawdown at the starting value, traders must carefully consider their withdrawal strategies to prevent going beyond their risk tolerance.
Trading Rules and Flexibility
- No Minimum/Maximum Trading Days: There are no limitations on trading days, and traders are free to finish the assessment at their own speed.
- No Secret Regulations: Clear parameters regarding drawdown and profit targets are part of the transparent review process.
- Commission for FX and stock CFDs is $3.5 per lot (per side); no extra costs apply for other products.
Pros and Cons
Pros:
- Various evaluation formats and account sizes for traders of different skill levels.
- High possible profit split (up to 90%).
- No trading day minimum or maximum.
- Clear guidelines for risk management and drawdown.
- Favorable reviews from users (4.6/5 on Trustpilot).
Cons:
- There is no trial period or refund policy.
- Withdrawals may increase risk by decreasing the drawdown buffer.
- Some products are subject to commission.
Conclusion
For traders looking for proprietary capital, Limitless funding account types and drawdown offers a stable and adaptable platform with account types and drawdown guidelines catered to various trading styles and skill levels. Since drawdown has a direct impact on risk, withdrawal strategy, and long-term account viability, it is crucial to comprehend its subtleties, both trailing and static. For both novice and experienced traders, Limitless Funding is an appealing choice because it provides clear guidelines, competitive profit splits, and a range of account options.
Frequently Asked Questions
After a withdrawal, what happens to drawdown?
- The maximum drawdown level on a one-phase account freezes at your initial beginning balance when you request a withdrawal, lowering the amount of buffer you have left for potential losses. For instance, your maximum drawdown locks at $100,000 if you start with $100,000, earn $8,000, and remove $6,000; this leaves you with just 2% left before you meet the drawdown limit.
Does the drawdown cap remain the same throughout the funded and assessment phases?
- Yes, both the evaluation and live funded account phases are subject to the same drawdown regulations. The drawdown for one-phase accounts is initially trailing and stops once the profit level is reached. The drawdown for two- and three-phase accounts is always the same.
What is a hard breach
- When your account equity surpasses the daily loss cap or drops below the maximum drawdown level, it is considered a hard breach. Funding is lost and the account is immediately closed as a result.
Can I trade during news events, employ Expert Advisors (EAs), or copy trade?
- Indeed, EAs, copy trading, and news trading are permitted on all account types with Limitless Funding.
Is a minimum or maximum number of trading days necessary?
- No, there aren’t any restrictions on the number of trading days. You are free to move at your own speed.
What occurs if I go over the daily loss or drawdown limit?
- You will not be able to access the funded account or assessment phase after your account is instantly closed.